Kymco USA’s Taiwan-based parent company — Kwang Yang Motor Co. Ltd. — has “shied away” from launching a wholesale or retail captive, but it’s not off the table for the manufacturer, Vice President of Sales and Marketing Bruce Ramsey told Powersports Finance.
“I’ve discussed it with the parent company in Taiwan several times both on the retail and wholesale side, and it’s not their core business, so they have shied away from that,” he said.
For the North American market in particular, a captive “would be a very viable option and financially sound.” However, in most other areas of the world, lending practices are “wholly different and the buyers are different, hence you see a lot more cash buying and a lot less financing.”
As such, financing is not a “significant enough” portion of the parent manufacturer’s global business to warrant the company’s investment into a captive program at this time, he said. “Perhaps in the future, but not yet,” Ramsey added.
Kymco’s sales, marketing, and distribution center is located in Spartanburg, S.C. The OEM serves over 500 dealers nationwide. Meanwhile, Kymco renewed its 16-year partnership with Wells Fargo Commercial Distribution Finance earlier this month to continue offering its dealers floorplan finance options.
This article originally appeared in the Sept. 21 issue of Auto Finance News Update.
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